WE NEED MINING LAWS THAT BITE – SIMUKONDA

By Lumbiwe Mwanza

ZAMBIA does not have powerful mining laws that deter illegalities in the sector and that is why some mining companies still have the hyena courage to abrogate existing laws with impunity, mining expert Edward Simukonda has charged.

Mr. Simukonda told The Scoop that it was unfortunate that the mining sector continued to record various forms of illegalities such as illegal mining activities and tax evasion, among others.

He pointed out tax evasion as an illegality that called for stronger policies and laws that seriously deterred would-be offenders.

Recently, the Zambia revenue authority (ZRA) seized US$ 250,000 and K 2.5 million cash from Good Time Steel Company on the Copperbelt during a search following allegations of tax evasion.

“The reason as a country we continue having cases of tax evasion by some mining companies is because Zambia doesn’t have laws that can bite. If the Government can put up laws that can bite and severely punish all those that want to evade paying taxes, people, especially the foreigners, would be scared to involve themselves in such illegalities that are denying the country of benefits from the natural resources.

“People have the nerve or the guts to stay away from paying taxes because they know there is no much punishment to face or that there is nothing much the Government would do to really chase them up. However, if as a country we pass laws that demand the arrest and prosecution of anyone found wanting for tax evasion and other illegalities, we will start seeing a big change especially the foreigners who fear Zambian prisons,” Mr. Simukonda said.

He said that if any mining company owing ZRA was pounced on and without giving a good reason as to why taxes had not been remitted, all top executives of that mining firm should be arrested and prosecuted.

He insisted on the formulation of stringent laws that would without doubt jack players in the sector up and avoid involving themselves in all forms of illegal activities.

He further said that all mining firms should be treated the same when it comes to tax remittance and other activities that deprive the country from benefiting adequately from its thriving mining sector going forward.